XEM/USD erased all losses after the announcement of hackers stealing $500 million worth of NEM coin. What could you expect next?
Wait... What's Going on?
Yet another cryptocurrency exchange was a victim of theft over the weekend, bringing to our attention one of the key issues with the market.
On Friday hackers stole over $500 million of NEM coins from a Japanese cryptocurrency exchange, Coincheck. The stolen coins were worth about 58 billion yen at the time of detection, or roughly $534.8 million.
How did Coincheck Deal with This?
Coincheck will reportedly refund the stolen coins to the customers who were affected by the theft. In the meantime, Coincheck froze all deposits, withdrawals, and trading of NEM coins.
It’s currently unknown exactly how the coins were stolen. But Japan’s Financial Services Agency is investigating the transfer.
XEMUSD Price Action
Not surprisingly NEM’s coin value, XEM/USD fell after the theft announcement. However, it was able to erase all losses in a massive bullish engulfing move on Saturday, but then again consolidating on Sunday. It opened Monday’s trading session with a rather bearish sentiment inside the daily Ichimoku cloud.
XEM/USD next support levels are at 61% and 78% Fibonacci retracement levels of 0.80 and 0.53 while medium-term resistance is at the all-time high levels around $2.
Why Didn't NEM's Price Drop More on Saturday?
Part of the reason why NEM’s price wasn’t affected by the theft announcement as investors would speculate, is that, well, we’re talking cryptocurrencies! Any news could be interpreted as good news and vice versa as many novice investors jump the gun when the prices go down, creating a highly volatile and speculative environment.
It still has time to go lower as the Monday traders wake up though. And it might again erase all losses afterward. When it comes to investing smart, it's best not to try to speculate the price short-term.
NEM is the 10th largest cryptocurrency by market cap. It’s the world’s first “Smart Asset” blockchain whose platform was designed and coded from the ground up for scale and speed.
This article was originally published here